Polen Capital Trimmed Adobe (ADBE) on Valuation Concerns

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. The US stock market started 2024 optimistically. In the first quarter, the fund returned 8.29% (gross) and 8.09% (net) compared to 11.41% for the Russell 1000 Growth Index and 10.56% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Polen Focus Growth Strategy featured stocks like Adobe Inc. (NASDAQ:ADBE) in the Q1 2024 investor letter. Headquartered in San Jose, California, Adobe Inc. (NASDAQ:ADBE) is a diversified software company that operates through Digital Media, Digital Experience, and Publishing and Advertising. On April 18, 2024, Adobe Inc. (NASDAQ:ADBE) stock closed at $473.18 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was -7.45%, and its shares gained 24.44% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $211.985 billion.

Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its first quarter 2024 investor letter:

“The largest relative detractors in the quarter were NVIDIA, Adobe Inc. (NASDAQ:ADBE), and Meta. We had trimmed Adobe before it reported earnings on valuation concerns, which we detail further in the Portfolio Activity section. The stock significantly declined when it reported earnings. We were not surprised by the company’s slight slowdown in revenue growth given the economic environment and lead time for customers to adopt new products, like its GenAI-based Firefly solutions.”

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Adobe Inc. (NASDAQ:ADBE) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Adobe Inc. (NASDAQ:ADBE) was held by 105 hedge fund portfolios, compared to 112 in the previous quarter, according to our database.

We previously discussed Adobe Inc. (NASDAQ:ADBE) in another article, where we shared Aristotle Capital’s Value Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.